FELS Setal Clinches $775M Contract

Monday, December 22, 2003

The consortium of FELS Setal SA, a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M) in Brazil, and Technip Engenharia S/A (Technip), an affiliate of Technip S.A., has been awarded the P-52 contract from Petrobras Netherlands BV (PNBV).
The signing ceremony of the US$775 million contract to build the semi-submersible production platform was witnessed by Brazil’s President Luiz Inácio Lula da Silva in the presence of more than 1000 guests at FELS Setal’s Brasfels Yard.
Delivery of the floating production unit is due in 41 months for possible deployment in the Roncador field, a deepwater location of the Campos Basin, off the north coast of the State of Rio de Janeiro, Brazil.
Mr Choo Chiau Beng, Chairman/Chief Executive Officer of Keppel O&M, said, “Our ‘near market, near customer’ strategy to set up shipyards in Brazil has given us the competitive edge in meeting our customer’s demand for higher local contents. We are committed to an on time on budget delivery of the platform.”
Mr Frédéric Delormel, Vice President Brazil and South America of Technip S.A., said, “Our more than 25 years presence in Brazil, combined with the country’s largest engineering workforce, have enabled us to evaluate all requirements and specifications of the project very carefully. We are confident of undertaking this project successfully. ”
The project involves the detailed engineering, procurement and construction of an 180,000 barrel of oil per day (bpd) semi-submersible production platform capable of operating in water depths up to 1,800 metres.
The management, construction interface and procurement activities of the project will be shared (75%/25%) by the FELS Setal/ Technip Consortium operating out of offices in Rio de Janeiro.
Technip will be responsible for the overall engineering and detailed engineering of the deckbox and offshore mating and transportation. Keppel FELS will be performing the detailed engineering and construction of the lower hull from one of its yards in Singapore. FELS Setal will undertake the construction of the deckbox, the complete topside and accommodation at its facilities in Angra dos Reis, with module fabrication at its facilities in Niteroi. It will also handle offshore activities such as commissioning and pre-operations start-up.
“P-52 will assist to establish FELS Setal as a key supporter of Brazil’s effort to increase oil output from Campos Basin and other Brazilian oil fields with significant local content. With the use of Technip’s e-procurement, P-52 will reinforce Technip’s commitment to the Brazilian industry, by promoting Brazilian suppliers on Technip’s world-wide projects.
“It represents a significant milestone in the rejuvenation of Brazilian offshore and marine sector, demonstrating local capabilities in complicated projects such as the P-52 and creating employment for thousands of Brazilian workers,” said Mr Tay Kim Hock, President and Chief Executive Officer of FELS Setal.
Mr Tay, who has been based in Brazil in the last three and a half years, has recently been awarded Honorary Citizenships of Rio State and the prefecture of Angra dos Reis for his contribution to the creation of jobs in Angra dos Reis, Niteroi and Macae.